Judge rules in lotto brawl
Francistown High Court Judge, Bashi Moesi had to take a long journey of many miles across the sea when making a ruling in the heated Dineo Tsa Pula shareholder dispute.
When starting his ruling, Justice Moesi said: “For reasons that I shall explain shorty I commence this Ruling with the wise words of Lord Wilberforce in the seminal case of Ebrahimi v Westbourne Galleries Ltd & Another.”
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Justice Moesi was quoting a classical United Kingdom company law case study of Ebrahimi v Westbourne Galleries Ltd & Another. In this case, which is as vintage as almost five decades, a UK court was trying to resolve a shareholder dispute. A term called “quasi-partnership” was coined from that time.
A quasi-partnership is an incorporated business which has at least some of the characteristics of a partnership, particularly those of confidence and trust between the participators. Other definitions of this term state that this phenomenon may arise when two or more individuals decide to establish or develop a business together, using a corporate vehicle – typically a limited company.
When localising a case of quasi-partnership, Justice Moesi was dealing with Fast Moving Consumable Goods (FMCG) magnate Chandra Chauhan versus media mogul and businessman Percy Raditladi. Chauhan jointly owns Grow Mine to trade as Dineo Tsa Pula as national lottery operator and he has shares in the project through his company Sefalana with a stake of 40 percent. Raditladi is a Managing Director of the company and a minority shareholder.
Just when the much anticipated big money national lottery project was about to take over, a boardroom brawl ensued between a major shareholder and the CEO of the company running the venture.
In the Ebrahimi v Westbourne Galleries Ltd & Another case the UK judiciary was resolving a matter in which friends who became business partners fell out.
Mr Ebrahimi and Mr Nazar each owned 50 percent of Westbourne Galleries and later on put their children as directors or shareholders of the company. Later a fall out ensued where Mr Nazar and his son voted to remove Mr Ebrahimi as a director and excluded him from the management of the business.
Mr Ebrahimi decided to petition the court for relief. In the judgement, the Lords believed that because the company was similar in its operation as it was when it was a partnership, they therefore created what is now known as a quasi-partnership.
Justice Moesi continued quoting the Ebrahimi v Westbourne Galleries Ltd & Another case before putting the technicalities of the case and arguments into the fore: “My Lords, … a limited company is more than a mere legal entity, with a personality in law of its own … there is room in company law for recognition of the fact that behind it, or amongst it, there are individuals, with rights, expectations and obligations inter se which are not necessarily submerged in the company structure.”
Like Mr Nazar did to Mr Ebrahimi in UK 47 years ago, Chauhan being the major shareholder had written to minority Raditladi and subsequently Grow Mine to fire the MD. On 7 November 2020, Chauhan applied to the Francistown court for an urgent application that will see Raditladi surrendering a laptop he is alleged to have been using for the Grow Mine MD office. Raditladi was then ordered through a court application to also bring forward the password to the computer as well as the virtual data room.
The Grow Mine MD was all ordered by Chauhan to bring: “All documents including, but not limited, to invoices paid, contracts, bank statements, deposit books, cheque books, both old and new/ and all other documents belonging to the applicant.”
Concurrently, on the 13 November 2020 Sefalana wrote a letter -seen by this publication- withdrawing from the Grow Mine shareholding. In the letter Chauhan stopped short of accusing Raditladi of being a traitor or saboteur trying to ‘sell’ the bid the company won to a rival.
Sefalana or Chauhan alleges that some directors are sabotaging the lottery project, some of them who have resigned from being directors. Raditladi resigned as MD and is now only shareholder. Chauhan also in his letter singled out “Mr Raditladi” as one of those who breach confidentiality and giving out sensitive and privileged information to “a number of institutions.”
Back to the court case before Justice Moesi, Raditladi made a counter application on Chauhan’s application, contending that the case brought against him was not urgent and that he is not obliged to give anyone his laptop or password. Raditladi’s lawyers said it is unlawful for their client to strip of his privacy or being password on this case to Chauhan.
Justice Moesi in his ruling did not see any sufficient evidence or facts brought by Chauhan to convince him to order Raditladi to surrender his digital privacy. The judge said the court is not satisfied that Chauhan in his founding affidavit has seriously and unambiguously addressed the key facts said to be disputed, namely the justification for Raditladi to retain possession of the documentary and electronic equipment and so on in his possession.
“I opened this Ruling by referring to the words of Lord Wilberforce in Ebrahimi v Westbourne Galleries Ltd & Another [supra] and undertook to give my reason in due course for so doing. The reason is that it is my well-considered opinion that what was said in that case aptly sums up what seems to be happening in Dineo Tsa Pula – namely that there are individuals, with rights, expectations and obligations inter se which are not necessarily submerged in the company structure.
Dineo Tsa Pula ought to have foreseen this dispute of fact arising because behind this matter and Dineo Tsa Pula (a company which Raditladi and other individuals played a crucial part in founding) lies a tale about various individuals who, though they have seemingly common high commercial aspirations, apparently have inharmonious agendas and expectations. Not unusual business-related differences between key role-players in Dineo Tsa Pula have resulted in this acrimonious litigation – involving an urgent application brought by Dineo Tsa Pula and an urgent counter-application brought by Raditladi – in my assessment spawning a real, genuine and bona fide dispute of fact,” said Justice Moesi’s ruling.
Justice Moesi concluded his ruling by ordering that there are real issues of fact in this case which cannot be determined without the aid of oral evidence. He then put the issue on Initial Case Management for March 2021.
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Nigerians, Zimbabweans apply for Chema Chema Fund
Fronting activities, where locals are used as a front for foreign-owned businesses, have been a long-standing issue in Botswana. These activities not only undermine the government’s efforts to promote local businesses but also deprive Batswana of opportunities for economic empowerment, officials say. The Ministry of Trade and Industry has warned of heavy penalties for those involved in fronting activities especially in relation to the latest popular government initiative dubbed Chema Chema.
According to the Ministry, the Industrial Development Act of 2019 clearly outlines the consequences of engaging in fronting activities. The fines of up to P50,000 for first-time offenders and P20,000 plus a two-year jail term for repeat offenders send a strong message that the government is serious about cracking down on this illegal practice. These penalties are meant to deter individuals from participating in fronting activities and to protect the integrity of local industries.
“It is disheartening to hear reports of collaboration between foreigners and locals to exploit government initiatives such as the Chema Chema Fund. This fund, administered by CEDA and LEA, is meant to support informal traders and low-income earners in Botswana. However, when fronting activities come into play, the intended beneficiaries are sidelined, and the funds are misused for personal gain.” It has been discovered that foreign nationals predominantly of Zimbabwean and Nigerian origin use unsuspecting Batswana to attempt to access the Chema Chema Fund. It is understood that they approach these Batswana under the guise of drafting business plans for them or simply coming up with ‘bankable business ideas that qualify for Chema Chema.’
Observers say the Chema Chema Fund has the potential to uplift the lives of many Batswana who are struggling to make ends meet. They argue that it is crucial that these funds are used for their intended purpose and not siphoned off through illegal activities such as fronting. The Ministry says the warning it issued serves as a reminder to all stakeholders involved in the administration of these funds to ensure transparency and accountability in their disbursement.
One local commentator said it is important to highlight the impact of fronting activities on the local economy and the livelihoods of Batswana. He said by using locals as a front for foreign-owned businesses, opportunities for local entrepreneurs are stifled, and the economic empowerment of Batswana is hindered. The Ministry’s warning of heavy penalties is a call to action for all stakeholders to work together to eliminate fronting activities and promote a level playing field for local businesses.
Meanwhile, the Ministry of Trade and Industry’s warning of heavy penalties for fronting activities is a necessary step to protect the integrity of local industries and promote economic empowerment for Batswana. “It is imperative that all stakeholders comply with regulations and work towards a transparent and accountable business environment. By upholding the law and cracking down on illegal activities, we can ensure a fair and prosperous future for all Batswana.”
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Merck Foundation and African First Ladies mark World Health Day 2024
Merck Foundation, the philanthropic arm of Merck KGaA Germany marks “World Health Day” 2024 together with Africa’s First Ladies who are also Ambassadors of MerckFoundation “More Than a Mother” Campaign through their Scholarship and Capacity Building Program. Senator, Dr. Rasha Kelej, CEO of Merck Foundation emphasized, “At Merck Foundation, we mark World Health Day every single day of the year over the past 12 years, by building healthcare capacity and transforming patient care across Africa, Asia and beyond.
I am proud to share that Merck Foundation has provided over 1740 scholarships to aspiring young doctors from 52 countries, in 44 critical and underserved medical specialties such as Oncology, Diabetes, Preventative Cardiovascular Medicine, Endocrinology, Sexual and Reproductive Medicine, Acute Medicine, Respiratory Medicine, Embryology & Fertility specialty, Gastroenterology, Dermatology, Psychiatry, Emergency and Resuscitation Medicine, Critical Care, Pediatric Emergency Medicine, Neonatal Medicine, Advanced Surgical Practice, Pain Management, General Surgery, Clinical Microbiology and infectious diseases, Internal Medicine, Trauma & Orthopedics, Neurosurgery, Neurology, Cardiology, Stroke Medicine, Care of the Older Person, Family Medicine, Pediatrics and Child Health, Obesity & Weight Management, Women’s Health, Biotechnology in ART and many more”.
As per the available data, Africa has only 34.6% of the required doctors, nurses, and midwives. It is projected that by 2030, Africa would need additional 6.1 million doctors, nurses, and midwives*. “For Example, before the start of the Merck Foundation programs in 2012; there was not a single Oncologist, Fertility or Reproductive care specialists, Diabetologist, Respiratory or ICU specialist in many countries such as The Gambia, Liberia, Sierra Leone, Central African Republic, Guinea, Burundi, Niger, Chad, Ethiopia, Namibia among others. We are certainly creating historic legacy in Africa, and also beyond. Together with our partners like Africa’s First Ladies, Ministries of Health, Gender, Education and Communication, we are impacting the lives of people in the most disadvantaged communities in Africa and beyond.”, added Senator Dr. Kelej. Merck Foundation works closely with their Ambassadors, the African First Ladies and local partners such as; Ministries of Health, Education, Information & Communication, Gender, Academia, Research Institutions, Media and Art in building healthcare capacity and addressing health, social & economic challenges in developing countries and under-served communities. “I strongly believe that training healthcare providers and building professional healthcare capacity is the right strategy to improve access to equitable and quality at health care in Africa.
Therefore, I am happy to announce the Call for Applications for 2024 Scholarships for young doctors with special focus on female doctors for our online one-year diploma and two year master degree in 44 critical and underserved medical specialties, which includes both Online Diploma programs and On-Site Fellowship and clinical training programs. The applications are invited through the Office of our Ambassadors and long-term partners, The First Ladies of Africa and Ministry of Health of each country.” shared Dr . Kelej. “Our aim is to improve the overall health and wellbeing of people by building healthcare capacity across Africa, Asia and other developing countries. We are strongly committed to transforming patientcare landscape through our scholarships program”, concluded Senator Kelej.
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Interpol fugitive escapes from Botswana
John Isaak Ndovi, a Tanzanian national embroiled in controversy and pursued under a red notice by the International Criminal Police Organization (Interpol), has mysteriously vanished, bypassing a scheduled bail hearing at the Extension 2 Magistrate Court in Gaborone. Previously apprehended by Botswana law enforcement at the Tlokweng border post several months earlier, his escape has ignited serious concerns.
Accused of pilfering assets worth in excess of P1 million, an amount translating to roughly 30,000 Omani Riyals, Ndovi has become a figure of paramount interest, especially to the authorities in the Sultanate of Oman, nestled in the far reaches of Asia.
The unsettling news of his disappearance surfaced following his failure to present himself at the Extension 2 Magistrate Court the preceding week. Speculation abounds that Ndovi may have sought refuge in South Africa in a bid to elude capture, prompting a widespread mobilization of law enforcement agencies to ascertain his current location.
In an official communiqué, Detective Senior Assistant Police Commissioner Selebatso Mokgosi of Interpol Gaborone disclosed Ndovi’s apprehension last September at the Tlokweng border, a capture made possible through the vigilant issuance of the Interpol red notice.
At 36, Ndovi is implicated in a case of alleged home invasion in Oman. Despite the non-existence of an extradition treaty between Botswana and Oman, Nomsa Moatswi, the Director of the Directorate of Public Prosecution (DPP), emphasized that the lack of formal extradition agreements does not hinder her office’s ability to entertain extradition requests. She highlighted the adoption of international cooperation norms, advocating for collaboration through the lenses of international comity and reciprocity.
Moatswi disclosed the intensified effort by law enforcement to locate Ndovi following his no-show in court, and pointed to Botswana’s track record of extraditing two international fugitives from France and Zimbabwe in the previous year as evidence of the country’s relentless pursuit of legal integrity.
When probed about the potential implications of Ndovi’s case on Botswana’s forthcoming evaluation by the Financial Action Task Force (FATF), Moatswi reserved her speculations. She acknowledged the criticality of steering clear of blacklisting, suggesting that this singular case is unlikely to feature prominently in the FATF’s assessment criteria.